What would actually happen if we defaulted?

borntorum

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May 26, 2008
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Genuine question - please keep the hyperbole and invective to other threads.

There's a lot of concerns and contradictory reports about what would happen to us if we default on our debt. Would the IMF automatically be called in? Would people's personal savings be affected? Would we be shut out of the world economy?

All considered responses gratefully received ;)
 


Future

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Sep 25, 2010
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Firts off, we would be going to the EU Stabilisation Fund which is a combination of Eurozone members and the IMF. This would give us the money required to keep the country running but with very strict conditions attached.

Personal savings wouldn't be affected in such a scenairo to the best of my knowledge.

We wouldn't be shut out of the world economy but we would be shut out of the money markets for a few years at least.

It would be a tough pill to swallow but it has the potential to allow us transform the country from top to bottom.
 

Raketemensch

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Genuine question - please keep the hyperbole and invective to other threads.

There's a lot of concerns and contradictory reports about what would happen to us if we default on our debt. Would the IMF automatically be called in? Would people's personal savings be affected? Would we be shut out of the world economy?

All considered responses gratefully received ;)
My own guess is that we have defaulted but the EU are not letting us post back the keys. It's the same as Greece but they have refined the process so that it looks even less like a proper default.
 

Harmonica

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I was told recently that all state employment and pension contracts would be void and we would lose our gold reserves. I suppose a bit like a business going into receivership. Debts would be renegotiated for cent on the euro.

I can't see how personal savings would be lost unless of course the bank holding the money needs to call in the bank guarantee.

The IMF would have to be invited in like lender of last resort.

:confused:
 

sport02

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One huge problem that would occur if we defaulted is we do not have control of our currency, so we cannot de-value it.
Now look at Iceland, they have control of their currency and as far as I am aware they have a favourable bond rate.
 


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